On 23 June 2026, the government announced a significant package of tax and customs reforms designed to cut red tape, improve fairness and give businesses greater certainty. The measures span a broad range of areas, all with the goal of reducing administrative burdens and freeing businesses up to focus on what matters most: growth.

Among the changes, three notable VAT-related changes are in motion - here's what each one means:

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1. Online Marketplace VAT Liability
If you sell goods through online marketplaces (such as Amazon, eBay or similar platforms), this one is important. The government is consulting on making online marketplaces directly liable for VAT on sales - covering both UK-based and overseas sellers.
The aim is to level the playing field: overseas sellers who currently evade VAT undercut legitimate UK businesses. Under the new proposals, the marketplace itself would be responsible for ensuring VAT is collected and paid.

What to watch for: If you sell via platforms, your marketplace may introduce new compliance requirements or change how VAT is handled on your sales. This is still at consultation stage, but is clearly the direction of travel.

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2. Land for Social Housing - New Zero Rate
The government is consulting on a new zero rate of VAT for the sale of land intended for social housing construction. If you operate in property development or land sales, this could reduce VAT costs and remove barriers for certain projects. Responses to the consultation will shape the final rules.

3. Digitising the Option to Tax
If your business has opted to tax land or commercial property (meaning you charge VAT on rents or sales), the current process for notifying HMRC is largely paper-based. This is being replaced with a new digital channel, including the ability to do bulk uploads. This is a straightforward win - less paperwork, faster processing and fewer errors.

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To note: Several of these measures are still at consultation stage, which means you have an opportunity to respond and shape the final rules. If any of the above areas significantly affect your business, consider engaging with the relevant consultation via gov.uk

_{This is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should betaken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.}

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